ST Engineering Order Book Swells to Over $10 Billion

Singapore listed blue chip, Singapore Technologies Engineering (ST Engg), order book for year 2008 swells to over $10 billion after the latest contracts for works at Resorts World at Sentosa (RWS).

Business Times - 30 Dec 2008

Sentosa deals lift ST Engg order book to $10b

By CHEW XIANG

SINGAPORE Technologies Engineering (ST Engg) yesterday said it has secured $86 million in contracts for works at Resorts World at Sentosa (RWS), bringing its order book to a record high of more than $10 billion.

'With this deal and various other contracts secured in the fourth quarter of this year, despite an unprecedented very challenging second half 2008, our order book as at end 2008 will exceed $10 billion, which is an all time high,' said president and chief executive officer Tan Pheng Hock.

The latest contracts are to supply an integrated security system, an IT infrastructure system and a car park guidance and payment system to the upcoming integrated resort and were awarded to ST Engg's electronics arm ST Electronics.

The contracts are the first major win for ST Electronics from an integrated resort.

ST Engg said in a statement that work will begin immediately and that the systems will be delivered over the next two years.

The contracts are not expected to have any material impact on the consolidated net tangible assets per share and earnings per share for the group's current financial year, ST Engg said.

The company said its security systems are currently installed in Dubai and Beijing as well as the Singapore Management University. Its carpark management systems are implemented in the Esplanade, Plaza Singapura and Tampines mall, among other places.

Two weeks ago, it announced it was selling &pound150 million (S$315 million) worth of armoured vehicles to the British army for use in Afghanistan. A day later, the company said it had won a contract to supply &pound35 million of 40mm ammunition, again to the British armed forces.

ST Engg closed at $2.36 yesterday, up seven cents, or 3.1 per cent, on volume of 1.3 million units.